Texas Roadhouse Inc (TXRH)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	523,947	469,221	440,211	387,798	355,469	340,575	342,778	332,412	320,904	315,795	301,462	304,878	296,817	254,691	228,656	91,503	26,457	56,787	66,040	167,047
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,358,350	1,308,290	1,262,640	1,207,190	1,141,660	1,103,960	1,082,980	1,055,250	1,012,640	977,575	938,892	1,019,780	1,058,120	1,065,170	1,046,840	993,621	927,505	902,916	868,021	896,292
Return on total capital		38.57%	35.87%	34.86%	32.12%	31.14%	30.85%	31.65%	31.50%	31.69%	32.30%	32.11%	29.90%	28.05%	23.91%	21.84%	9.21%	2.85%	6.29%	7.61%	18.64%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $523,947K ÷ ($—K + $1,358,350K)
= 38.57%

Texas Roadhouse Inc's return on total capital has shown fluctuations over the quarters. The ratio increased from 18.64% in March 2020 to peak at 38.57% by December 2024, indicating improved efficiency in utilizing total capital to generate profits. Although there were some periods of decline, from December 2020 to March 2021 and June 2022 to December 2022, the overall trend has been positive. The company experienced significant growth in returns from June 2023 onwards, reaching a peak of 38.57% by the end of December 2024, showcasing strong performance in capital utilization. A high return on total capital indicates that the company is effectively using its capital resources to generate profits for its shareholders.